Precision Stainless Steel Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Precision Stainless Steel Market is segmented By Thickness (Below 0.1 mm, 0.10-0.16 mm, 0.16-0.25 mm, 0.25-0.40 mm, 0.40-0.60 mm, Others), By Product Type (Cold Drawn, Hot Rolled), By Grade (Austenitic, Ferritic, Duplex, Martensitic, Precipitation-Hardened), By Application (Heat Exchangers, Flexible Tubing, Brake Pad Springs, Etching Materials, Engine Gasket, Connectors, Window Spacers, Bellows, Fuel Cell Separation Membrane, Surgical & Medical Instruments, Others), By End-User (Automotive & Transportation, Heavy Industry, Consumer Goods, Buildings & Construction, Food Industry, Pharmacy, Aerospace, Others), By Region (North America, Europe, South America, Asia-Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Precision Stainless Steel Market Overview

The "Global Precision Stainless Steel Market" is predicted to reach a high CAGR during the forecast period (2022-2029).

Steel is a carbon and iron alloy. Stainless steels comprise chromium and carbon as well as other alloy components. The chrome content offers corrosion resistance to stainless steel facilitating the healthy and progressive surface layer of chromium oxide. Moreover, a precision stainless steel product can be determined by its metallurgical and density status. The properties of specific stainless steel apply mainly to their thickness, hardness ranges, width tolerance, toughness tolerance of the entire sheet, finished surface, surface roughness, tensile strength and edge conditions.

In addition, the demand for precision stainless steel is growing as the construction sector is increasing due to the tremendous expansion of the population. Precision stainless steel is ideal for the rising demand for incalculably powerful and robust material in the construction sector. It ensures a robust construction that is a significant factor in the construction industry, thereby boosting the market growth.

Precision Stainless Steel Market Scope and Summary

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Precision Stainless Steel Market Dynamics and Trends

The increasing inclination of consumers towards the automotive sector is triggering the demand for precision stainless steel in recent times. Growing demand for foil components in the electronic industry creates a strong opportunity for the precision stainless steel market growth.

Increasing demand for foil components in the electronic industry is expected to increase the market size

The precision stainless steel market offers raw materials to several industries and also finds application in the foil market. Foil component is utilized in the electronics industry for its superior conductive property. It is also utilized in the solar industry, which is expected to boost the precision stainless steel market well. This is because the utilization of solar energy would itself grow in the coming years. It will eventually boost the demand for precision stainless steel made with other components like carbon, iron, nickel, chromium and phosphorous. Moreover, the per capita precision stainless steel product consumption is directly linked to the global economy.

According to industry analysis, it will be growing due to increasing investment toward infrastructural development, expansion of the manufacturing sector, rising fixed asset investment, and various other factors. Global solar PV capacity has increased from around 5 GW in 2005 to approx. 509.2 GW in 2018. Cumulative solar PV installations reached some 42.39 GW in Germany alone. The expense of the solar power market is expected to continue rising rapidly during the forecast period. In addition, solar energy technologies remain one of the most heavily funded renewable sources.

The capacity of newly established solar PV has continued to grow over the last decades, with China being one of the largest markets for solar cells and modules steadily. China stood home to nine of the world’s ten leading solar module companies in 2017. The country’s percentage of the global installed photovoltaic capacity reached 54.09% in recent years. Simultaneously, solar PV capacity is only estimated for about one percent of the country’s energy output.

The growing utilization of precision stainless steel in the automotive sector is expected to boost the market growth

The market is forecast to observe increasing demand from the automotive sector. As a result, the increasing application of advanced high strength steel (AHSS) will drive well for the overall market. Moreover, global sales of automobiles are forecast to fall to just under 69.89 million units in 2021, down from a peak of almost 79.78 million units in 2017. The auto industry's most significant industry segments include passenger cars and commercial vehicles. China is reckoned among the largest automobile markets worldwide, both in terms of sales and production.

The increasing price of raw materials is expected to hinder the market growth

However, the consistently rising price of raw materials used for manufacturing precision stainless steel is expected to hinder the market's growth. The unbridled grow of raw material prices is creating pricing challenges for market players. This, combined with supply chain disruptions witnessed due to the unprecedented outbreak of the novel coronavirus, is expected to hamper the market's growth to an extent. In addition, the replacement of steel with other cost-friendly and lightweight materials is expected to restrain the market for precision stainless steel.

Precision Stainless Steel Market Segmentation Analysis

By product type, the market is segmented into cold drawn and hot rolled.

Hot rolled steel has been roll-pressed at extremely high temperatures—over 1,700˚F, above the recrystallization temperature for most steels. This causes the steel easier to form and result in outcomes that are easier to work with. Hot rolled steel typically needs much less processing than cold rolled steel, making it much cheaper. Because hot rolled steel is provided to cool at room temperature, it’s essentially normalized—indicating it’s free from internal stresses that can occur from quenching or work-hardening processes. In addition, hot rolled steel offers various significant characteristics such as:

• A scaled surface is a reMillionant of cooling from severe temperatures
• Slight distortions, where cooling may occur in slightly trapezoidal forms, as engaged to perfectly squared angles
• Slightly rounded corners and edges for bar & plate products (due to shrinkage and less precise finishing)

Cold rolled steel is typically hot rolled steel that has been within further processing. Once hot rolled steel has chilled, it is re-rolled at room temperature to obtain more exact dimensions and more suitable surface qualities. Cold “rolled” steel is usually used to describe a range of finishing processes, though technically, “cold rolled” concerns only sheets that experience compression between rollers. Steel forms pulled, such as tubes or bars, are “drawn,” not rolled. Other cold finishing methods include turning, polishing and grinding, modifying existing hot rolled stock into more refined products. With more suitable surface properties than hot rolled steel, it’s no astonishment that cold rolled steel is often used for more technically well-defined applications or where aesthetics are essential. But due to the extra processing for cold finished products, they come at a higher price. Moreover, cold-rolled steel offers various significant characteristics such as:

• Better, more finished surfaces with closer tolerances
• Bars are square and true that are often have well-defined corners and edges 
• Smooth surfaces that are often oily to the touch
• Tubes have better concentric uniformity and straightness

Global Precision Stainless Steel Market Geographical Analysis

Based on the geography, the precision stainless steel market is segmented into North America, Europe, South America, Asia-Pacific, and Middle East & Africa. The demand for precision stainless steel in the Asia-Pacific market is expected to remain at the dominant position in sales and value generation due to the growing volume of trade and e-commerce in countries such as China and India.

Asia-Pacific dominates the precision stainless steel market during the forecast period

In terms of both consumption and output, the Asia-Pacific region dominates the precision stainless steel market. However, China is expected to continue dominant through the forecast period due to the expansion of automotive and building and construction industries are creating a multitude of growth opportunities in the global market. Therefore, leading players are gradually shifting their business activities in Japan, China and South Korea. The availability of resources at a low cost supports the region to gain traction from the key players. Moreover, leading precision stainless steel manufacturers in the East Asia region are anticipated to increase considerably during the forecast period. As a result, the market value is expected to accelerate at a significant CAGR through the forecast period. Auto sales in China grew in March for their 12th consecutive month of gains, as the world's biggest car market leads the sector's recovery from the COVID-19 pandemic. In March, sales reached 2.52 million vehicles March, up 74.89% year-on-year, data from the China Association of Automobile Manufacturers (CAAM) showed.

Europe, led by Germany, will prevail as the second most lucrative region through the forecast period. According to industrial analysis, growth opportunities are foreseen to be plenty in Europe due to several prominent market players. Also, reform initiatives by the government(s) are playing a significant role. As a result, Europe offers a sizeable market share, and its value is expected to rise consistently during the assessment period.

The rising demand from countries in North America is compelling the manufacturers towards ramping up their sales and manufacturing facilities. This is further anticipated to increase the market growth in the region at an exceptional rate during the forecast period. In addition, the precision steel market industry would be bringing more opportunities for the North American region. The construction and infrastructure sector are foreseen as crucial factors for market growth.

Precision Stainless Steel Market Companies and Competitive Landscape

The precision stainless steel market is fragmented with the presence of regional and global players. The competitive contour lies with the increase in the regional company and growing investment in upstream application. Aperam Stainless, POSCO SPS, Jindal Stainless, ArcelorMittal, Outokumpu, ThyssenKrupp Stainless, Nippon Steel, Acerinox, Baoshan Iron & Steel Co., AK Steel Corporation are the major player in the stainless-steel market. The major players adopt several growth strategies such as product launches, acquisitions, and collaborations, contributing to growing the precision stainless steel market globally.

Aperam Stainless

Overview: Aperam is a global player in electrical, specialty steel and stainless, with customers in over 40 countries. The business is organized in three primary operating segments: alloys & specialties, services & solutions and stainless & electrical steel. In addition, Aperam has a flat electrical and stainless-steel capacity of 2.5 million tonnes in Europe and Brazil and is a leader in high-value specialty products. Additionally, to its industrial network, grown over six production facilities in Belgium, France and Brazil, Aperam has an extremely combined processing, distribution and services network and a single capability to provide stainless and special steels from low-cost biomass (charcoal made from its FSC-certified forestry).

Product Portfolio: 

With over 175 years of experience, the company has established itself as a specialist in precision stainless steel - a product defined by its metallurgical condition, thickness or specific associated services (such as quick delivery time and small quantities). Moreover, the company portfolio of precision solutions includes widths from 3 mm to 700 mm, thicknesses ranging from 0.060 mm to 2.50 mm, high-specification surface finishes & mechanical characteristics, and quenched martensitic.

Furthermore, the company's portfolio of precision stainless steel products is as diverse as consumer needs. From the company extensive range of grades, surface finishes and edge, metallurgical conditions & geometric tolerances to impressive availability of sizes (from 0.060 to 2.5 mm thicknesses, from 3 to 700 mm width) and packaging options (coils, plates, oscillated wound coils, etc.) and have a stainless-steel solution that fits all consumer technical needs. Moreover, the company's precision stainless steel solutions are designed to serve various markets and applications, including building, industry, automotive, springs, pressing & drawing, aeronautics and energy.

The global precision stainless steel market report would provide access to an approx. 77 market data table, 89 figures and 180 pages.